Thailand is fast becoming Southeast Asia’s go-to spot for luxury shopping. Valued at around USD 4.4 billion, the luxury retail market is expected to grow about 5% each year until 2028. This growth is drawing in top luxury brands, affluent locals, and shoppers from around the world. According to CBRE Thailand’s 2025 Real Estate Market Outlook, the strong link between tourism and retail, plus smart expansions and fresh ideas from developers, are fueling this rise. In this blog, we’ll explore what’s driving Thailand’s success, the challenges it faces, and what lies ahead for its luxury market in the region.
CBRE Thailand’s Report Highlights
CBRE Thailand, a leading international property consultant, underscores Thailand’s luxury retail ascendancy in their 2025 Real Estate Market Outlook. The key drivers identified include:
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Tourism Growth: Thailand welcomed 35.5 million international tourists in 2024, and with more airline routes opening up, it’s become a key destination for retail-focused travelers. The ongoing boom is clear—over 410,000 square meters of new shopping mall space is being added in downtown Bangkok between 2024 and 2025, highlighting just how fast the market is growing.
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Appeal to High-Net-Worth Individuals (HNWIs): Thailand’s image as a safe and stable country, along with long-term visa programs designed for wealthy expats, has helped attract a steady flow of affluent residents and visitors—many of whom are driving the rise in luxury spending.
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Innovative Retail Spaces: Developers are reimagining prime locations, focusing on immersive retail experiences, dedicated luxury areas, and flagship stores in hotspots like Bangkok’s Lumphini area and Central Phuket Floresta.
Thailand is ranked seventh in the Asia-Pacific for luxury retail and is the leader in Southeast Asia, drawing interest from new brands because of its lively retail scene.
Tourism and Retail Synergy
One of Thailand's biggest strengths is the seamless integration of its booming tourism sector with its retail market. Tourist-heavy areas, such as Bangkok, Phuket, and Pattaya, have become epicenters of high-end shopping, with malls like ICONSIAM and Siam Paragon leading the charge.
Accessible through extensive transportation links, major retail developments like The Mall Group's Em District strategically leverage mass transit connections to optimize foot traffic. Beyond beaches and culture, many tourists are drawn to Thailand for its luxury shopping, complete with tax-free options and personalized services. The alignment of retail strategies with tourism has allowed Thailand to meet the demands of international visitors, who accounted for USD 2.3 billion in luxury store spending in 2024 alone.
Thailand’s Strategy for Attracting Wealthy Expats
Thailand has also made strides in capitalizing on its appeal to high-net-worth individuals. With programs like the “Thailand Elite Visa,” the country offers long-term residency options that attract professionals, retirees, and investors. This influx of affluent foreign residents has significantly bolstered demand for luxury goods.
Combined with its safe environment and favorable policies, Thailand has positioned itself as an attractive destination not only for short-term visitors but also for wealthy expatriates seeking permanence. This growing base of elite customers has created immense opportunities for high-end retail spaces, fine dining establishments, and experiential luxury services.
Developer Responses to Consumer Demands
To cater to both affluent locals and international shoppers, developers are reshaping retail destinations by introducing premium offerings and enhancing the overall experience. Key responses include:
Luxury Zones: Malls like Central Embassy in Bangkok are allocating more space to international luxury brands and flagship stores. For instance, Dior recently unveiled its standalone Dior Gold House, signaling confidence in the Thai luxury market.
Image credit: Central Embassy
Experiential Retail: Retail environments that offer more than shopping are on the rise. Gaysorn Village’s Louis Vuitton LV The Place Bangkok blends retail, dining, and exhibitions to create immersive brand experiences that enhance customer loyalty.
Image credit: Gaysorn Village
Premium Features: Exclusive perks such as multilingual assistance, tax-free shopping, and curated tenant mixes are becoming standard among luxury retailers to elevate the shopping experience.
Phuket, a city with a high concentration of wealthy tourists, has also seen significant growth in projects like Central Phuket Floresta and Siam Premium Outlets. This aggressive investment into both Bangkok and resort destinations highlights a national strategy to capture the luxury market across key regions.
Image credit: Central Phuket Facebook Page
Market Challenges
While Thailand’s luxury retail market has seen great success, there are still challenges to keeping that momentum going. Local buyers sometimes face financial limits, the market is becoming crowded, and competition between shopping destinations is heating up. With more than 410,000 square meters of new retail space expected by 2025, keeping stores fully occupied and shoppers engaged will take constant innovation.
On top of that, luxury brands are getting pickier about where and how they expand in Thailand. Developers need to hit the mark with prime locations, easy access, and a strong fit with each brand’s image to attract and keep these top-tier partners.
The Road Ahead for Thailand’s Luxury Retail Market
Thailand’s luxury retail future looks promising, driven by the continued interplay between tourism and high-end consumerism. Key factors poised to shape the market moving forward include:
Continued Expansion: The planned addition of 15 exclusive luxury brands to Siam Paragon and ICONSIAM in 2025 further emphasizes Thailand’s appeal as a global shopping destination.
Image credit: Mallbangkok.com
Growth of Experiential Retail: With consumers craving immersive environments, brands and developers must prioritize creating unique spaces that go beyond traditional retail offerings.
Ongoing Innovation: To attract and retain affluent shoppers, mall operators will need to innovate continually, offering strategic tenant mixes and premium amenities tailored to discerning customers.
Thailand’s ability to adapt to evolving consumer expectations while leveraging its strengths in tourism positions it as a luxury powerhouse. According to CBRE Thailand’s Head of Consulting & Research, Ms. Chotika Tungsirisurp, “Developers and retailers that prioritize location, innovation, and premium environments will be well-positioned to capture the next wave of growth.”
Why Thailand is the Future of Luxury Retail
Thailand’s strategic location, growing affluence, and reputation for world-class retail experiences make it a standout leader in the luxury market. The combination of thoughtful urban development, synergy with tourism, and emphasis on premium offerings ensures continued appeal for both global brands and high-net-worth shoppers.
For developers, retailers, and stakeholders looking to engage with this thriving market, Thailand presents unparalleled opportunities. Thanks to its forward-thinking policies and dedication to meeting consumer demand, the nation’s status as Southeast Asia’s luxury retail hub is no longer a dream but a reality.
This article is based on data and insights from:
- CBRE Thailand (2025) report, Thailand’s Ascendancy as Regional Luxury Retail Hub.
- CBRE Thailand (2025) report, Thailand Real Estate Market Outlook 2025.
